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Core Scientific Rejects Coreweave Takeover Bid

Core Scientific Rejects Coreweave Takeover Bid

Core Scientific, a major mining company, turned down an unexpected takeover bid from Coreweave, an AI and cloud services provider, on June 3.

In a statement, Core Scientific revealed that despite an offer of $5.75 per share, the board rejected the bid, deeming it undervalued for the company’s worth:

“After careful evaluation of our growth prospects and value creation potential, the Board concluded that the CoreWeave proposal significantly undervalues our company.”

The company asserted that such a deal would not serve the best interests of its shareholders.

This offer came after a series of long-term agreements between the two firms, the latest being a deal allowing Coreweave to lease 18% of Core Scientific’s infrastructure for 12 years.

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In March 2023, Core Scientific inked a leasing pact with Coreweave, granting access to one of its data centers in Austin, Texas, providing 16 megawatts of capacity for Coreweave’s AI computing services.

Core Scientific faced financial turmoil in December 2022, filing for Chapter 11 Bankruptcy during the crypto market downturn. However, after a restructuring period, it relisted on stock exchanges in January 2024.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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